CIMB Group Holdings Bhd group chief executive officer Novan Amirudin (left) and group chief financial officer Khairul Rifaie (right).
PETALING JAYA: CIMB Group
Holdings Bhd remains cautious about its 2025 prospects, staying vigilant amid external and geopolitical uncertainties, according to group chief executive officer Novan Amirudin.
“While challenges persist, we expect resilience across our Asean markets where we operate and anticipate our core financial performance to continue on a positive trajectory, in tandem with profitability prioritisation without compromising investments and resiliency,” Novan said in a statement.
“As we chart the group’s next phase of growth with our new strategic plan, we remain steadfast as a purpose-led organisation in our commitment to advancing customers and society across Asean.
“We will prioritise optimising our capital and resources and continue to drive sustainable growth, making this organisation simpler, better and faster,” he added.
In the fourth quarter ended Dec 31, 2024 (4Q24), CIMB’s net profit rose 5% to RM1.8bil from RM1.7bil in the previous corresponding quarter, translating to an earnings per share (EPS) of 16.78 sen, up from 16.09 sen a year ago.
Revenue for the quarter, however, dipped slightly to RM5.32bil from RM5.37bil in 4Q23.
For the full financial year 2024 (FY24), CIMB’s earnings rose 10.7% year-on-year (y-o-y) to RM7.7bil, or an EPS of 72.27 sen, while revenue increased 6.1% to RM22.3bil.
The banking group has proposed a second interim dividend of 20 sen per share, bringing the total proposed annual dividend to 47 sen per share.
This translates to a record total dividend payout of RM5.04bil.
The stronger financial results led to a significant improvement in return on average equity (ROE) to 11.2%, up 50 basis points (bps) y-o-y.
Its operating income rose 6.1% y-o-y to RM22.3bil in FY24, contributed by growth in net interest income (NII) and non-interest income (NOII).
CIMB said its NII was up 5.3% y-o-y to RM15.4bil, driven by a healthy loan growth, while NOII grew 8.1% y-o-y to RM6.9bil, on the back of strong client franchise business and trading income, improving NOII ratio to 31%.
On a constant currency basis, CIMB’s total gross loans grew by a healthy 4.8% y-o-y, in line with market trends.
Under its deposit-led strategy, total deposits increased 5.2% y-o-y, while current account savings account (Casa) balances rose 7.7% y-o-y, boosting the Casa ratio to 43.1% as of December 2024.
The bank’s cost-to-income ratio improved 20 bps to a sustainable 46.7%, as operating expenses remained under control.
Pre-provisioning operating profit grew 6.6% y-o-y to RM11.88bil.
Total provisions fell 5.5% y-o-y to RM1.5bil, driven by improved asset quality.
The gross impaired loans ratio dropped 60 bps to 2.1%, while allowance coverage hit a record 105.3%.
The group continues to be well-capitalised as its common equity tier-one ratio remained strong at 14.6%, providing future flexibility for it to absorb any potential increase in capital requirements.
“We are pleased that our strategy to pivot towards client franchise income, pricing discipline and deposits have led to a strong FY24 performance.
“The results reflect the success of the Forward23+ strategic plan, credited to portfolio reshaping, efficiency and resiliency, and improved asset quality.
“Our focus to be the leading focused Asean bank proves to benefit us, helping us to prioritise our customers,” Novan said.
CIMB shed 4.99% yesterday to close at RM7.81.
